RVSB Riverview Bancorp Inc

Riverview Bancorp, Inc. (Nasdaq:RVSB) (“Riverview” or the “Company”) today reported net income of $1.5 million, or $0.07 per diluted share, in its third fiscal quarter ended December 31, 2017. This compares to net income of $3.1 million, or $0.14 per diluted share, in the preceding quarter and net income of $2.0 million, or $0.09 per diluted share, in the third fiscal quarter a year ago. Net income was impacted during the current quarter due to a valuation adjustment of the Company’s net deferred tax asset along with the use of a lower blended tax rate, which resulted in an additional net income tax expense of $1.8 million, or $0.08 per diluted share. Pre-tax income for the third fiscal quarter of 2018 was $5.1 million, which was a $449,000, or 9.6%, increase compared to the preceding quarter and a $2.1 million, or 71.8%, increase from the year ago quarter.

In the first nine months of fiscal year 2018, Riverview’s net income increased to $7.2 million, or $0.32 per diluted share, compared to $5.4 million, or $0.24 per diluted share, in the first nine months of fiscal year 2017.

“Riverview had another successful quarter with strong net interest income generation, an expanding net interest margin and continued operating efficiencies,” stated Pat Sheaffer, chairman, chief executive officer and president. “With the successful integration of the MBank transaction behind us, our focus remains on expanding our franchise. We will continue to look for growth opportunities in the Portland area and its surrounding markets.”

As a result of the Tax Cuts and Jobs Act (the “Tax Act”) enacted on December 22, 2017, Riverview revalued its deferred tax assets and liabilities to account for the future impact of lower corporate tax rates and other provisions of the Tax Act. Based on its preliminary analysis, Riverview recorded a one-time net tax charge of $1.8 million related to the lower corporate tax rate adopted in the Tax Act. This increase in income tax expense was reflected in Riverview’s operating results for the third fiscal quarter of 2018 and was in addition to the normal provision for income tax related to pre-tax net operating income.

“We recorded an additional net income tax expense of $1.8 million, or $0.08 per diluted share, due to the passage of the Tax Cuts and Jobs Act in the third fiscal quarter of 2018,” said Kevin Lycklama, executive vice president and chief operating officer. “Going forward, we expect to fully recoup this additional expense within the next fiscal year, due to the lower corporate tax rate. The effective tax rate for our fourth fiscal quarter of 2018 is expected to be approximately 31.5% due to our use of a blended tax rate for the remainder of this fiscal year. We expect our effective tax rate will decline to approximately 22.5% beginning on April 1, 2018 at the start of our new fiscal year.”

Third Quarter Highlights (at or for the period ended December 31, 2017)

• Net interest margin (NIM) expanded by three basis points to 4.06% compared to the preceding quarter and expanded 31 basis points compared to the third quarter a year ago.
• Total loans increased $13.6 million during the quarter to $797.3 million.
• Non-performing assets were 0.26% of total assets.
• Efficiency ratio improved to 62.5%.
• Tangible book value per share was $3.93.
• Total risk-based capital ratio was 15.07% and Tier 1 leverage ratio was 9.82%.
• Declared quarterly cash dividend of $0.03 per share, generating a current dividend yield of 1.28% based on the market price on January 23, 2018.

Income Statement

Riverview’s net interest income was $10.8 million in the third fiscal quarter of 2018, a $71,000 increase compared to $10.7 million in the preceding quarter and a $2.3 million increase compared to $8.5 million in the third fiscal quarter a year ago. In the first nine months of fiscal 2018, net interest income increased $7.5 million to $32.0 million compared to $24.4 million in the first nine months of fiscal 2017.

“Our net interest margin expanded three basis points in the third quarter of fiscal 2018 compared to the prior linked quarter reflecting a lower balance of cash and liquid assets earning a nominal yield,” said Lycklama. The interest accretion on purchased loans totaled $175,000 and resulted in a six basis point increase in the NIM during the third fiscal quarter. Fiscal year-to-date, the NIM increased 33 basis points to 4.06% compared to 3.73% in the first nine months of fiscal 2017.

Non-interest income was $2.9 million in the third fiscal quarter, a $177,000 increase compared to $2.7 million the prior quarter and a $557,000 increase compared to $2.3 million in the same quarter a year ago. In the first nine months of fiscal 2018, non-interest income increased to $8.3 million compared to $7.4 million in the first nine months of fiscal 2017. The nine month year over year increase was primarily due to an increase in fees and service charges and asset management fees.

Asset management fees were $911,000 in the third fiscal quarter of 2018 compared to $818,000 in the preceding quarter and $709,000 in the third fiscal quarter a year ago. Riverview Trust Company’s (“RTC”) assets under management increased to $490.1 million at December 31, 2017 compared to $461.2 million three months earlier and $403.3 million a year earlier. During the fourth quarter of fiscal 2017, RTC opened a second office in the Portland suburb of Lake Oswego, expanding its footprint and product offerings in the Portland market.  

Non-interest expense decreased $201,000 to $8.6 million during the third fiscal quarter of 2018 compared to $8.8 million in the preceding quarter and increased $707,000 from $7.9 million for the same prior year period mainly due to the MBank transaction. There were no transaction related costs from the MBank transaction in the current quarter compared to $177,000 in transaction related costs during the preceding quarter. The efficiency ratio improved to 62.5% for the quarter ended December 31, 2017, compared to 65.2% in the preceding quarter and 72.5% in the third fiscal quarter a year ago. “With all MBank transaction costs behind us, we expect to continue to capitalize on the cost savings and operating efficiencies associated with a larger organization,” said Lycklama. “We will continue to look for other opportunities to improve profitability and increase shareholder value.”

Balance Sheet Review

Total loans increased $13.6 million during the quarter to $797.3 million at December 31, 2017 compared to $783.7 million at September 30, 2017, and increased $133.0 million compared to $664.3 million a year ago. The growth in the loan portfolio was primarily concentrated in commercial business, multi-family and warehouse/industrial loans. Undisbursed construction loans totaled $61.8 million at December 31, 2017, with the majority of the undisbursed construction loans expected to fund over the next several quarters. The commercial loan pipeline totaled $61.6 million at the end of the quarter.

Total deposits increased $131.8 million to $972.2 million at December 31, 2017 compared to $840.4 million a year ago but decreased compared to $990.3 million at September 30, 2017. The decrease compared to the prior quarter end was primarily due to the timing of deposit transactions. Core deposits represent 98.0% of total deposits at December 31, 2017.

Shareholders’ equity was $116.8 million at December 31, 2017 compared to $116.7 million three months earlier and $109.4 million a year earlier. Tangible book value per share was $3.93 at both December 31, 2017 and September 30, 2017 and an increase compared to $3.72 at December 31, 2016. A quarterly cash dividend of $0.03 per share was paid on January 23, 2018.

Credit Quality

Classified assets totaled $6.9 million at December 31, 2017 compared to $7.1 million at September 30, 2017 and the classified asset to total capital ratio was 5.7% compared to 6.0%, respectively.

Riverview’s non-performing loans were $2.7 million, or 0.33% of total loans, at December 31, 2017 compared to $2.8 million, or 0.35% of total loans, three months earlier. Real estate owned balances of $298,000 at December 31, 2017 were unchanged compared to the preceding quarter end.

The allowance for loan losses totaled $10.9 million, representing 1.36% of total loans at December 31, 2017 compared to $10.6 million and 1.35% of total loans at September 30, 2017. Included in the carrying value of loans are net discounts on the MBank purchased loans which may reduce the need for an allowance for loan losses on these loans, because they are carried at an amount below the outstanding principal balance. The remaining net discount on these purchased loans was $2.4 million at December 31, 2017 compared to $2.6 million at the end of the prior quarter. Net loan recoveries were $250,000 during the third fiscal quarter of 2018 compared to $20,000 in the preceding quarter.

Riverview recorded no provision for loan losses during the third fiscal quarter of 2018 or in the preceding quarter, primarily as a result of the lower levels of delinquent, nonperforming and classified loans, elevated levels of net recoveries, as well as stabilizing values in our market areas which mitigated the required allowance for loan losses due to our loan growth.

Capital

Riverview continues to maintain capital levels well in excess of the regulatory requirements to be categorized as “well capitalized” with a total risk-based capital ratio of 15.07% and a Tier 1 leverage ratio of 9.82% at December 31, 2017. In addition at that date the Company’s  tangible common equity to tangible assets ratio was 8.05%.

Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. We believe that certain non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance; however, readers of this report are urged to review these non-GAAP financial measures in conjunction with GAAP results as reported.

Financial measures that exclude intangible assets are non-GAAP measures. To provide investors with a broader understanding of capital adequacy, Riverview provides non-GAAP financial measures for tangible common equity, along with the GAAP measure. Tangible common equity is calculated as shareholders’ equity less goodwill and other intangible assets. In addition, tangible assets are total assets less goodwill and other intangible assets. We calculate tangible book value per share by dividing tangible common equity by the number of common shares outstanding.  This non-GAAP financial measure has inherent limitations, is not required to be uniformly applied and is not audited. Further, the non-GAAP financial measure should not be considered in isolation or as a substitute for book value per share or total stockholders' equity determined in accordance with GAAP and may not be comparable to similarly titled measures reported by other companies. Reconciliations of the GAAP and non-GAAP financial measures are presented below.

(Dollars in thousands)		December 31, 2017			September 30, 2017			December 31, 2016			March 31, 2017
Shareholders' equity		$	116,803		$	116,742		$	109,400		$	111,264
Goodwill			27,076			27,076			25,572			27,076
Core deposit intangible, net			1,161			1,219			-			1,335
Tangible shareholders' equity		$	88,566		$	88,447		$	83,828		$	82,853
Total assets		$	1,128,342		$	1,147,680		$	985,669		$	1,133,939
Goodwill			27,076			27,076			25,572			27,076
Core deposit intangible, net			1,161			1,219			-			1,335
Tangible assets		$	1,100,105		$	1,119,385		$	960,097		$	1,105,528

About Riverview

Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver, Washington – just north of Portland, Oregon on the I-5 corridor. With assets of $1.13 billion at December 31, 2017, it is the parent company of the 94-year-old Riverview Community Bank, as well as Riverview Trust Company. The Bank offers true community banking services, focusing on providing the highest quality service and financial products to commercial and retail customers. There are 19 branches, including 14 in the Portland-Vancouver area and three lending centers. For the past 4 years, Riverview has been named Best Bank by the readers of The Vancouver Business Journal, The Columbian and The Gresham Outlook.

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that are subject to risks and uncertainties, including, but not limited to: expected cost savings, synergies and other financial benefits from our recent purchase of certain assets and assumption of certain liabilities of MBank and Merchants Bancorp pursuant to the Purchase and Assumption Agreement (the "Agreement") with Merchants Bancorp and its wholly owned subsidiary MBank (the "transaction") might not be realized within the expected time frames or at all, and costs or difficulties relating to integration matters might be greater than expected; the Company’s ability to raise common capital; the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs and changes in the Company’s allowance for loan losses and provision for loan losses that may be impacted by deterioration in the housing and commercial real estate markets; changes in general economic conditions, either nationally or in the Company’s market areas; changes in the levels of general interest rates, and the relative differences between short and long term interest rates, deposit interest rates, the Company’s net interest margin and funding sources; fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in the Company’s market areas; secondary market conditions for loans and the Company’s ability to sell loans in the secondary market; results of examinations of us by the Office of Comptroller of the Currency or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase the Company’s reserve for loan losses, write-down assets, change Riverview Community Bank’s regulatory capital position or affect the Company’s ability to borrow funds or maintain or increase deposits, which could adversely affect its liquidity and earnings; legislative or regulatory changes that adversely affect the Company’s business including changes in regulatory policies and principles, or the interpretation of regulatory capital or other rules; the Company’s ability to attract and retain deposits; further increases in premiums for deposit insurance; the Company’s ability to control operating costs and expenses; the use of estimates in determining fair value of certain of the Company’s assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risks associated with the loans on the Company’s balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect the Company’s workforce and potential associated charges; computer systems on which the Company depends could fail or experience a security breach; the Company’s ability to retain key members of its senior management team; costs and effects of litigation, including settlements and judgments; the Company’s ability to successfully integrate any assets, liabilities, customers, systems, and management personnel it may in the future acquire into its operations and the Company’s ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; the Company’s ability to pay dividends on its common stock; and interest or principal payments on its junior subordinated debentures; adverse changes in the securities markets; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; other economic, competitive, governmental, regulatory, and technological factors affecting the Company’s operations, pricing, products and services and the other risks described from time to time in our filings with the SEC.

Such forward-looking statements may include projections. Any such projections were not prepared in accordance with published guidelines of the American Institute of Certified Public Accountants or the Securities Exchange Commission regarding projections and forecasts nor have such projections been audited, examined or otherwise reviewed by independent auditors of the Company. In addition, such projections are based upon many estimates and inherently subject to significant economic and competitive uncertainties and contingencies, many of which are beyond the control of management of the Company. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by the Company that the projections will prove to be correct.

The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for fiscal 2018 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company’s operating and stock price performance.

RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Balance Sheets
(In thousands, except share data)  (Unaudited)	December 31, 2017				September 30, 2017				December 31, 2016				March 31, 2017
ASSETS
Cash (including interest-earning accounts of $3,739, $59,315, $14,302	$	23,105			$	76,245			$	28,262			$	64,613
and $46,245)
Certificate of deposits held for investment		6,963				9,797				11,291				11,042
Loans held for sale		351				347				1,679				478
Investment securities:
Available for sale, at estimated fair value		224,931				200,584				207,271				200,214
Held to maturity, at amortized cost		44				46				67				64
Loans receivable (net of allowance for loan losses of $10,867, $10,617
$10,289, and $10,528)		786,460				773,087				654,053				768,904
Real estate owned		298				298				298				298
Prepaid expenses and other assets		4,843				4,227				4,832				3,815
Accrued interest receivable		3,464				3,111				2,846				2,941
Federal Home Loan Bank stock, at cost		1,223				1,181				1,060				1,181
Premises and equipment, net		15,680				15,740				13,953				16,232
Deferred income taxes, net		3,988				6,167				8,665				7,610
Mortgage servicing rights, net		399				406				390				398
Goodwill		27,076				27,076				25,572				27,076
Core deposit intangible, net		1,161				1,219				-				1,335
Bank owned life insurance		28,356				28,149				25,430				27,738
TOTAL ASSETS	$	1,128,342			$	1,147,680			$	985,669			$	1,133,939
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposits	$	972,214			$	990,299			$	840,391			$	980,058
Accrued expenses and other liabilities		9,117				10,838				10,450				13,080
Advance payments by borrowers for taxes and insurance		260				920				288				693
Federal Home Loan Bank advances		1,050				-				-				-
Junior subordinated debentures		26,461				26,438				22,681				26,390
Capital lease obligations		2,437				2,443				2,459				2,454
Total liabilities		1,011,539				1,030,938				876,269				1,022,675
SHAREHOLDERS' EQUITY:
Serial preferred stock, $.01 par value; 250,000 authorized,
issued and outstanding, none		-				-				-				-
Common stock, $.01 par value; 50,000,000 authorized,
December 31, 2017 - 22,551,912 issued and outstanding;
September 30, 2017 - 22,533,912 issued and outstanding;		226				225				225				225
December 31, 2016 - 22,510,890 issued and outstanding;
March 31, 2017 – 22,510,890 issued and outstanding;
Additional paid-in capital		64,703				64,612				64,448				64,468
Retained earnings		53,878				53,034				46,750				48,335
Unearned shares issued to employee stock ownership plan		-				(26	)			(103	)			(77	)
Accumulated other comprehensive loss		(2,004	)			(1,103	)			(1,920	)			(1,687	)
Total shareholders’ equity		116,803				116,742				109,400				111,264
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,128,342			$	1,147,680			$	985,669			$	1,133,939

 

RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Income
	Three Months Ended								Nine Months Ended
(In thousands, except share data)  (Unaudited)	Dec. 31, 2017		Sept. 30, 2017		Dec. 31, 2016				Dec. 31, 2017		Dec. 31, 2016
INTEREST INCOME:
Interest and fees on loans receivable	$	9,978	$	9,994	$	7,883			$	29,761	$	22,954
Interest on investment securities - taxable		1,201		1,079		946				3,413		2,435
Interest on investment securities - nontaxable		31		14		11				59		11
Other interest and dividends		168		228		112				483		344
Total interest and dividend income		11,378		11,315		8,952				33,716		25,744
INTEREST EXPENSE:
Interest on deposits		298		313		277				933		837
Interest on borrowings		284		277		173				829		494
Total interest expense		582		590		450				1,762		1,331
Net interest income		10,796		10,725		8,502				31,954		24,413
Provision for loan losses		-		-		-				-		-
Net interest income after provision for loan losses		10,796		10,725		8,502				31,954		24,413
NON-INTEREST INCOME:
Fees and service charges		1,451		1,490		1,304				4,348		3,815
Asset management fees		911		818		709				2,582		2,258
Net gain on sale of loans held for sale		140		157		191				522		493
Bank owned life insurance		206		204		185				617		566
Other, net		182		44		(56	)			272		296
Total non-interest income		2,890		2,713		2,333				8,341		7,428
NON-INTEREST EXPENSE:
Salaries and employee benefits		5,383		5,251		4,850				16,056		14,021
Occupancy and depreciation		1,347		1,412		1,158				4,105		3,520
Data processing		534		580		562				1,730		1,533
Amortization of core deposit intangible		58		58		-				174		-
Advertising and marketing expense		137		256		163				627		608
FDIC insurance premium		108		136		77				389		273
State and local taxes		96		177		170				427		455
Telecommunications		102		103		75				309		224
Professional fees		250		261		355				926		1,066
Real estate owned expenses		3		3		2				8		52
Other		540		522		439				1,740		2,311
Total non-interest expense		8,558		8,759		7,851				26,491		24,063
INCOME BEFORE INCOME TAXES		5,128		4,679		2,984				13,804		7,778
PROVISION FOR INCOME TAXES		3,608		1,620		991				6,571		2,408
NET INCOME	$	1,520	$	3,059	$	1,993			$	7,233	$	5,370
Earnings per common share:
Basic	$	0.07	$	0.14	$	0.09			$	0.32	$	0.24
Diluted	$	0.07	$	0.14	$	0.09			$	0.32	$	0.24
Weighted average number of common shares outstanding:
Basic		22,537,092		22,518,941		22,490,433				22,520,352		22,477,473
Diluted		22,622,129		22,609,480		22,563,712				22,608,603		22,537,663

 

(Dollars in thousands)		At or for the three months ended												At or for the nine months ended
		Dec. 31, 2017				Sept. 30, 2017				Dec. 31, 2016				Dec. 31, 2017			Dec. 31, 2016
AVERAGE BALANCES
Average interest–earning assets		$	1,055,600			$	1,056,818			$	900,542			$	1,045,283		$	869,364
Average interest-bearing liabilities			744,431				749,172				652,195				746,262			636,795
Net average earning assets			311,169				307,646				248,347				299,021			232,569
Average loans			785,264				783,213				658,212				784,926			645,598
Average deposits			988,558				992,111				839,588				980,766			810,700
Average equity			118,831				116,675				112,444				116,399			111,261
Average tangible equity (non-GAAP)			90,562				88,351				86,872				88,074			85,689
ASSET QUALITY		Dec. 31, 2017				Sept. 30, 2017				Dec. 31, 2016
Non-performing loans		$	2,656			$	2,745			$	2,787
Non-performing loans to total loans			0.33	%			0.35	%			0.42	%
Real estate/repossessed assets owned		$	298			$	298			$	298
Non-performing assets		$	2,954			$	3,043			$	3,085
Non-performing assets to total assets			0.26	%			0.27	%			0.31	%
Net recoveries in the quarter		$	(250	)		$	(20	)		$	(266	)
Net recoveries in the quarter/average net loans			(0.13	)%			(0.01	)%			(0.14	)%
Allowance for loan losses		$	10,867			$	10,617			$	10,289
Average interest-earning assets to average
interest-bearing liabilities			141.80	%			141.06	%			138.08	%
Allowance for loan losses to
non-performing loans			409.15	%			386.78	%			369.18	%
Allowance for loan losses to total loans			1.36	%			1.35	%			1.55	%
Shareholders’ equity to assets			10.35	%			10.17	%			11.10	%
CAPITAL RATIOS
Total capital (to risk weighted assets)			14.94	%			15.07	%			15.93	%
Tier 1 capital (to risk weighted assets)			13.68	%			13.82	%			14.68	%
Common equity tier 1 (to risk weighted assets)			13.68	%			13.82	%			14.68	%
Tier 1 capital (to average tangible assets)			9.84	%			9.75	%			10.81	%
Tangible common equity (to average tangible assets)			8.05	%			7.90	%			8.73	%
DEPOSIT MIX		Dec. 31, 2017				Sept. 30, 2017				Dec. 31, 2016				March 31, 2017
Interest checking		$	170,151			$	175,127			$	167,522			$	171,152
Regular savings			136,249				134,116				109,629				126,370
Money market deposit accounts			270,193				274,409				250,900				289,998
Non-interest checking			264,728				270,678				202,080				242,738
Certificates of deposit			130,893				135,969				110,260				149,800
Total deposits		$	972,214			$	990,299			$	840,391			$	980,058

 

COMPOSITION OF COMMERCIAL AND CONSTRUCTION  LOANS
					Other						Commercial
		Commercial			Real Estate			Real Estate			& Construction
		Business			Mortgage			Construction			Total
December 31, 2017		(Dollars in thousands)
Commercial business		$	130,960		$	-		$	-		$	130,960
Commercial construction			-			-			25,384			25,384
Office buildings			-			122,281			-			122,281
Warehouse/industrial			-			83,829			-			83,829
Retail/shopping centers/strip malls			-			67,751			-			67,751
Assisted living facilities			-			2,982			-			2,982
Single purpose facilities			-			165,060			-			165,060
Land			-			12,469			-			12,469
Multi-family			-			61,851			-			61,851
One-to-four family construction			-			-			15,359			15,359
Total		$	130,960		$	516,223		$	40,743		$	687,926
March 31, 2017
Commercial business		$	107,371		$	-		$	-		$	107,371
Commercial construction			-			-			27,050			27,050
Office buildings			-			121,983			-			121,983
Warehouse/industrial			-			74,671			-			74,671
Retail/shopping centers/strip malls			-			78,757			-			78,757
Assisted living facilities			-			3,686			-			3,686
Single purpose facilities			-			167,974			-			167,974
Land			-			15,875			-			15,875
Multi-family			-			43,715			-			43,715
One-to-four family construction			-			-			19,107			19,107
Total		$	107,371		$	506,661		$	46,157		$	660,189
LOAN MIX		Dec. 31, 2017			Sept. 30, 2017			Dec. 31, 2016			March 31, 2017
		(Dollars in thousands)
Commercial and construction
Commercial business		$	130,960		$	118,444		$	64,401		$	107,371
Other real estate mortgage			516,223			500,382			432,782			506,661
Real estate construction			40,743			53,878			52,707			46,157
Total commercial and construction			687,926			672,704			549,890			660,189
Consumer
Real estate one-to-four family			91,752			90,764			85,956			92,865
Other installment			17,649			20,236			28,496			26,378
Total consumer			109,401			111,000			114,452			119,243
Total loans			797,327			783,704			664,342			779,432
Less:
Allowance for loan losses			10,867			10,617			10,289			10,528
Loans receivable, net		$	786,460		$	773,087		$	654,053		$	768,904

 

DETAIL OF NON-PERFORMING ASSETS
				Other			Southwest			Other
				Oregon			Washington			Washington			Other			Total
December 31, 2017
	Commercial business			$	-		$	289		$	-		$	-		$	289
	Commercial real estate				1,084			207			-			-			1,291
	Land				770			-			-			-			770
	Consumer				-			207			-			99			306
	Total non-performing loans				1,854			703			-			99			2,656
	REO				-			-			298			-			298
Total non-performing assets				$	1,854		$	703		$	298		$	99		$	2,954
DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS
				Northwest			Other			Southwest
				Oregon			Oregon			Washington			Total
December 31, 2017				(dollars in thousands)
	Land development			$	486		$	896		$	11,087		$	12,469
	Speculative construction				-			371			12,335			12,706
Total land development and speculative  construction				$	486		$	1,267		$	23,422		$	25,175

 

	At or for the three months ended										At or for the nine months ended
SELECTED OPERATING DATA	Dec. 31, 2017			Sept. 30, 2017			Dec. 31, 2016				Dec. 31, 2017			Dec. 31, 2016
Efficiency ratio (4)		62.53	%		65.18	%		72.46	%			65.74	%		75.57	%
Coverage ratio (6)		126.15	%		122.45	%		108.29	%			120.62	%		101.45	%
Return on average assets (1)		0.53	%		1.06	%		0.80	%			0.85	%		0.75	%
Return on average equity (1)		5.07	%		10.40	%		7.03	%			8.25	%		6.41	%
NET INTEREST SPREAD
Yield on loans		5.04	%		5.06	%		4.75	%			5.03	%		4.72	%
Yield on investment securities		2.24	%		2.14	%		2.06	%			2.20	%		1.96	%
Total yield on interest-earning assets		4.28	%		4.25	%		3.95	%			4.29	%		3.93	%
Cost of interest-bearing deposits		0.17	%		0.17	%		0.18	%			0.17	%		0.18	%
Cost of FHLB advances and other borrowings		3.89	%		3.81	%		2.73	%			3.80	%		2.61	%
Total cost of interest-bearing liabilities		0.31	%		0.31	%		0.27	%			0.31	%		0.28	%
Spread (7)		3.97	%		3.94	%		3.68	%			3.98	%		3.65	%
Net interest margin		4.06	%		4.03	%		3.75	%			4.06	%		3.73	%
PER SHARE DATA
Basic earnings per share (2)	$	0.07		$	0.14		$	0.09			$	0.32		$	0.24
Diluted earnings per share (3)		0.07			0.14			0.09				0.32			0.24
Book value per share (5)		5.18			5.18			4.86				5.18			4.86
Tangible book value per share (5) (non-GAAP)		3.93			3.93			3.72				3.93			3.72
Market price per share:
High for the period	$	9.45		$	8.48		$	7.61			$	9.45		$	7.61
Low for the period		8.44			6.64			5.23				6.51			4.30
Close for period end		8.67			8.40			7.00				8.67			7.00
Cash dividends declared per share		0.0300			0.0225			0.0200				0.0750			0.0600
Average number of shares outstanding:
Basic (2)		22,537,092			22,518,941			22,490,433				22,520,352			22,477,473
Diluted (3)		22,622,129			22,609,480			22,563,712				22,608,603			22,537,663

(1)	Amounts for the quarterly periods are annualized.
(2)	Amounts exclude ESOP shares not committed to be released.
(3)	Amounts exclude ESOP shares not committed to be released and include common stock equivalents.
(4)	Non-interest expense divided by net interest income and non-interest income.
(5)	Amounts calculated based on shareholders’ equity and include ESOP shares not committed to be released.
(6)	Net interest income divided by non-interest expense.
(7)	Yield on interest-earning assets less cost of funds on interest-bearing liabilities.

Contacts: Pat Sheaffer or Kevin LycklamaRiverview Bancorp, Inc. 360-693-6650